Chapter Preparing tourism businesses for the digital future Abstract

Building a smart tourism approach
As digitalisation evolves, emerging technologies are combining in novel ways to push the digital transformation in new and often unpredictable directions (OECD, 2018c). In tourism, this convergence is happening in two key areas: the coming together of digital technologies, and digital technologies merging with the physical world (e.g. wearable technologies, AR, image recognition, etc.). Digital convergence is when one or more digital technologies come together to operate in sync, where data and information are shared, new innovations emerge allowing for seamless interactions across the full visitor journey. After transport is booked, for example, travellers can be sent automated suggestions based on their previous behaviours for transfers, accommodation and things to do in the destination. With minimal clicks, a car is booked, hotel check-in completed, a restaurant reserved and tickets secured. Automation, artificial intelligences and big data analytics facilitate the interoperability of booking systems but pre-existing partnerships can also lock in customer choices to preferred partners and lock out SMEs offering alternative products and services. Data analytics and algorithms can work to favour certain suppliers, customising and bundling products and prompt customer engagement before, during and after travel. The challenge for SMEs is to understand, engage and strategize so they can assert a presence in these digital networks as customers can choose the convenience of a suggestion over doing their own research. Dynamic data collection and analytics refine knowledge about the consumer, facilitate customisation and enhance visitor satisfaction (WEF, 2017).
In tourism, digital-physical convergence is demonstrated by augmented reality, wearable technologies, and the Internet-of-Things to generate new hybrid products, services and experiences. Examples include e-bikes, e-scooters and e-cars which can be accessed anywhere, anytime with a mobile app, reducing the need for a front office presence and staff, to potentially be replaced by tech support and maintenance facilities. When scaled across cities, regions or a country, smart tourism development is possible.
Box 2.5. Leveraging enabling technologies to develop smart tourism
Korea: Korea has five objectives to its National Tourism Innovation Strategy, one of which is to create a smart tourism ecosystem. Korea’s Smart Tourism Strategy began by creating the infrastructure for smart tourism. This comprehensive approach includes a platform of integrated online tourist information, free Wi-Fi at major tourist attractions and big data analysis for future reference and improvement. The platform provides tools while traveling such as (AR/VR) chatbot service message-based communication on translation, tourist information, and tourist complaint services. While the Tourism Big Data Platform is in use, it accumulates and shares the data gathered about the tourist with local governments and the private sector to better inform tourism stakeholders.